GBP Falls as King Outlines Challenges

The British Pound tumbled today losing a full cent to the US dollar as Mervyn King, Governor of the Bank of England England, suggested that the economic recovery has not been as robust as anticipated. King warned that a continuation of the Bank’s quantitative easing program could still be necessary and he also asked the government for specific details on how it intended to cope with a record deficits now topping £178 billion.

“The crisis,” King said referring to the recession, “has left us facing many serious challenges. Among them are how to reform the international financial system, how to reduce our largest peacetime fiscal deficit, and how to restructure our banking and financial system to prevent another, more serious, crisis in future.”

Source: The Times

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